Rocket Equities & Options Report 08-10-21 - 2 New Equity Buys
Tuesday Market Report - 2 New Buys DAL & BA
Markets continue to float near all time highs today as we come into a big inflationary data point tomorrow with CPI numbers expected.
Disney is out with their earnings Thursday after the bell.
The airlines and Boeing are some of the stocks that I've been looking at recently that look ripe for a buy. The travel stocks have been volatile for obvious reasons lately, but we are at a nice entry area in some of these equities.
We are buying DAL (Delta Airlines) and BA (Boeing) as of this update. Delta is up 2.5% today trading at $40.30. BA is up 1.3% today trading at $235.27.
Delta has pulled back a .382 from the run it had from the lows last year, and has also pulled back to about a .618 retracement of the shorter move that began in last October. This is a nice area of confluence to step into this equity with our backs against the wall.
Boeing is forming a nice weekly channel to the upside, and BA just bounced off the lower boundary line.
These trades are somewhat correlated as obviously BA makes planes, but I like both the set ups so I went with both.
DAL is trading at $40.30. Buy DAL for our long term equity portfolio. The stop is $37.36.
BA is trading at $235.27. Buy BA for our long term equity portfolio. The stop is $219.40.
Disney is out with their earnings Thursday after the bell.
The airlines and Boeing are some of the stocks that I've been looking at recently that look ripe for a buy. The travel stocks have been volatile for obvious reasons lately, but we are at a nice entry area in some of these equities.
We are buying DAL (Delta Airlines) and BA (Boeing) as of this update. Delta is up 2.5% today trading at $40.30. BA is up 1.3% today trading at $235.27.
Delta has pulled back a .382 from the run it had from the lows last year, and has also pulled back to about a .618 retracement of the shorter move that began in last October. This is a nice area of confluence to step into this equity with our backs against the wall.
Boeing is forming a nice weekly channel to the upside, and BA just bounced off the lower boundary line.
These trades are somewhat correlated as obviously BA makes planes, but I like both the set ups so I went with both.
DAL is trading at $40.30. Buy DAL for our long term equity portfolio. The stop is $37.36.
BA is trading at $235.27. Buy BA for our long term equity portfolio. The stop is $219.40.
Delta Weekly
DAL has retraced a .382 from the entire move higher from the COVID lows. This also correlates to the price area from February when DAL caught a bid.
Delta Daily
DAL has also retraced a .618 of the shorter time frame move it's had since November of last year, again correlating to where it found a bid earlier this year in February.
BA Weekly
BA forming a nice uptrend channel on a weekly basis
ES Daily
VIX
VIX continues to make lower lows and lower highs
10-Year Note
10-year was yielding 1.12% last Wednesday and up to 1.34% today -
higher yields coming at us with CPI data due tomorrow
higher yields coming at us with CPI data due tomorrow
Gold Daily
Gold retraced the entire move it had from March to May highs
BTC
DIS is trading at $176.64. We bought DIS at $118.63. Disney accelerated lower Tuesday before rebounding Thursday from the $170 area (the .382 retracement level from the move that started in early November of last year), which we've been talking about is an area of strength for Disney. Disney reports numbers Thursday after the bell this week. Options are pricing in about a $6.50 move in either direction on their earnings this week. The market is well aware that DIS is being impacted by the third COVID wave, potentially causing restrictions for their parks in Orlando, which is now requiring masks indoors again, and California, but all eyes will be on their streaming numbers. Disney has been in a consolidation between about $170 and $180 since their last earnings.
DIS Daily
UBER is trading at $43.43. We bought Uber at $31.50. We want to see Uber get back above the $45 area with some volume. Uber had a nice rejection of lower price last week following their earnings, and now we want to see a continuation of that move higher.
UBER Daily
WMT is trading at $148.61. We bought WMT at $140.91. WMT continues to trade higher from its recent lows, and is currently in its 8th straight green weekly bar. WMT and just closed the gap left open from February, as well as climbing above its May highs. WMT could be forming an ABC, which could take it up to the $154 price area in the short term. WMT also has a dividend yield of 1.48%. WMT comes out with their earnings August 17th.
WMT Weekly
MCD is trading at $233.65. We bought MCD at $216.91. MCD has pulled back into its consolidation area after making new all-time highs. MCD is in an ABC up formation, which will take it up to $255.76. MCD passed its B point the week of April 5th with 14+ million shares traded on a weekly basis vs. 10.5M and 9.5M at its B point back in October of last year. MCD also has a dividend yield of 2.20%.
MCD Daily
CRM is trading at $250.51. We bought CRM at $215.35. CRM is heading towards its recent high of $253.50, and the next stop after that is all time highs above $280. CRM comes out with their earnings August 24th.
CRM Daily
CRM is running into resistance at about the $250 area, which correlates to the upper boundary from the huge gap area from their earnings last August. We want to see it get above this area with strength and volume.
CRM Daily - closer look
On a more short term basis, CRM has pulled back a .382 from the move it had from May to the recent July highs.
Options Trades:
None
Short Term portfolio:
None active
Long Term portfolio:
DAL is trading at $40.30. Buy DAL for our long term equity portfolio. The stop is $37.36.
BA is trading at $235.27. Buy BA for our long term equity portfolio. The stop is $219.40.
Long half position in WMT at $140.91. WMT is trading at $148.84. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $245.00. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $177.02. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $43.77. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $233.79. Stop is $189.50.
None
Short Term portfolio:
None active
Long Term portfolio:
DAL is trading at $40.30. Buy DAL for our long term equity portfolio. The stop is $37.36.
BA is trading at $235.27. Buy BA for our long term equity portfolio. The stop is $219.40.
Long half position in WMT at $140.91. WMT is trading at $148.84. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $245.00. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $177.02. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $43.77. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $233.79. Stop is $189.50.
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